Study of the Impact of Agricultural Insurance on the Livelihood Resilience of Farmers: A Case Study of Comprehensive Natural Rubber Insurance

Jialin Wang, Yanglin Wu, Jiyao Liu () and Desheng Zhang
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Jialin Wang: International Business School, Hainan University, Haikou 570228, China
Yanglin Wu: International Business School, Hainan University, Haikou 570228, China
Jiyao Liu: International Business School, Hainan University, Haikou 570228, China
Desheng Zhang: International Business School, Hainan University, Haikou 570228, China

Agriculture, 2025, vol. 15, issue 15, 1-23

Abstract: Against the backdrop of increasingly frequent extreme weather events and heightened market price volatility, investigating the relationship between agricultural insurance and farmers’ livelihood resilience is crucial for ensuring rural socioeconomic stability. This study utilizes field survey data from 1196 households across twelve county-level divisions (three cities and nine counties) from China’s Hainan and Yunnan provinces, specifically in natural rubber-producing regions. Using propensity score matching (PSM), we empirically examine agricultural insurance’s impact on household livelihood resilience. The results demonstrate that agricultural insurance increased the effect on farmers’ livelihood resilience by 1%. This effect is particularly pronounced among recently poverty-alleviated households and large-scale farming operations. Furthermore, the analysis highlights the mediating roles of credit availability, adoption of agricultural production technologies, and production initiative in strengthening insurance’s positive impact. Therefore, policies should be refined and expanded, combining agricultural insurance with credit support and agricultural technology extension to leverage their value and ensure the sustainable development of farm households.

Keywords: agricultural insurance; farmers’ livelihood resilience; propensity score matching method (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2025
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